Troy, 18, one of the youngest people staying at the camp. He’s now been offered permanent housing with his wife. Photograph: Jonny Weeks for the Guardian

Troy, 18, was one of the camp’s youngest residents. He said he was moving into permanent government housing but that “housing one person” wasn’t a solution.

“What people don’t realise is that this place actually helps people, it finds people work, it finds people houses and a new way to get their lives started again ... They should be showing these people more respect than they are right now.”

Organisers told Guardian Australia they did not know what would happen to residents who refused to voluntarily move from the camp. When asked whether all residents would leave by Friday night, Priestley said he did not know.

“How long is a piece of sting?” he said. “I don’t know that 10 other homeless people aren’t going to turn up here at 5 o’clock”.

Belinda Percy, who has been volunteering at the camp, packing away the blankets. She says people are moving peacefully in full cooperation with police. Photograph: Jonny Weeks for the Guardian

“Women were waking up with people urinating on them, things like that were happening,” she said.

“Close to 100 people or probably more now have transitioned from homeless into housing [from the camp]. A lot of people who work full-time jobs but can’t afford the rental market have had the opportunity to save their money while staying here and have transitioned into private accommodation with their own savings.”

Trent, who had lived in the camp for three months, said it provided a sense of community, but he did not know where he would go once it was cleared.

“It’s a pretty fucked up world out there, this gives us a sense that there is someone out there that cares,” he said.

Trent, an Indigenous man who has been staying at the camp, says there has been a great sense of community. Photograph: Jonny Weeks for the Guardian

“It’s a positive place. I’ve got no family and no support. This place makes me feel like home.”

The new legislation, the Sydney Public Reserves (Public Safety) Act, allows police to order people out of the Martin Place reserve – the area between Macquarie Street and George Street – if they present an interference to the public.

Under the act, the state governor can also apply the new powers to any public reserve under the Crown Lands Act in Sydney. Previously, only the city council had the power to direct the removal of certain items from Martin Place.